Comcast is aggressively investing in its theme parks business
For 2017, Comcast (CMCSA) expects its NBCUniversal business’s capital expenditure to rise ~10%, mainly driven by its investments in its theme parks business.
Comcast is looking at adding one attraction per year at each of its theme parks in the United States (SPY). The company is also looking at increasing the room capacity at its hotel in Florida to 10,000 rooms.
Recently, the company opened a new Jimmy Fallon attraction at its theme park in Orlando, Florida, and it plans to open its Volcano Bay water theme park later this year. It expects these two attractions to drive attendance and per capita guest spending at its theme parks in 2017.
Comcast’s investment in international theme parks
At the end of 1Q17, Comcast also completed its consolidation of Universal Studios Japan (EWJ) by purchasing the remaining 49% stake in the park for $2.3 billion. The company stated at the JPMorgan Chase (JPM) Tech, Media and Telecom Conference last month that it had acquired the IP (intellectual property) rights to Nintendo. In 2019, it intends to launch a Nintendo World attraction at Universal Studios Japan, and it plans to do the same later in Orlando.
Comcast also intends to open a theme park in Beijing, China (FXI), in 2022.
As the chart above indicates, Comcast’s theme parks made up 14% of its NBCUniversal business’s total revenue of $7.8 billion in 1Q17.